Brazil industry group challenges President Lula’s renewed push to ban betting

Brazil’s regulated betting sector has pushed back against renewed calls by President Luiz Inácio Lula da Silva to ban gambling, warning that such a move would drive activity into the black market and reduce state revenue.

The Brazilian Institute of Responsible Gaming (IBJR) said licensed operators contributed BRL 9.95 billion ($2 billion) in taxes in 2025. Additionally, licensees must pay a BRL 30 million license fee and other levies.

With planned tax changes, the total burden on operators is expected to reach 42% of gross gaming revenue by 2033. The institute said removing the regulated market would cut off these funds.

Lula, speaking earlier this week, said he would shut down betting if given the authority, while acknowledging that any decision would depend on Congress. He also alleged that betting operators influence political actors, though he did not name individuals, and questioned why the activity should continue if it is causing harm.

Brazil’s regulated betting market began operating on January 1, 2025, introducing licensing requirements and consumer safeguards. The IBJR said eliminating this system would not reduce demand but shift it into unregulated channels.

“Closing the legal market would not eliminate societal demand, but would push everyone into the informal sector, eliminating protection mechanisms and significant revenue destined for essential public services,” the IBJR said.

The institute pointed to controls within the regulated system, including identity verification, facial recognition to prevent underage access, and restrictions on payment methods. Regulated platforms, which must use the .bet.br domain, are also not allowed to accept credit cards or cryptocurrencies.

Lula has also linked betting to rising household debt, particularly during a March address marking International Women’s Day. He said families are losing money intended for essentials through mobile betting and called for coordinated action to stop what he described as digital casinos from indebting households.

The IBJR said available data does not support the scale of impact suggested. According to a study by LCA Consultoria, betting accounts for between 0.2% and 0.5% of household consumption. It also cited survey data showing that 80.2% of over-indebtedness cases are linked to credit cards, not gambling.

The institute said regulated platforms include tools such as deposit limits, time controls, and self-exclusion features, arguing that these safeguards are absent in illegal markets.

It called on authorities to maintain the current framework rather than reverse it. “Backtracking on regulation would mean suppressing vital revenues for social development and exposing Brazilians to the informal market,” the IBJR said.